Cementa, as its names implies, is a cement manufacturing processor from mine to finished product. The process is very energy intensive and the gas emissions from the process cannot be fully filtered and scrubbed as anyone down wind of a cement plant will attest. In a nutshell, limestone is crushed to the size of a large pebble, combined with silica (sand), blast furnace slag (iron) and alumina plus a few other ingredients depending on the end specifications required. The mix is then put through a large kiln and roasted at 2700 degrees Fahrenheit. The process generates gas emissions as noted above, the resulting material called clinker is then cooled before being crushed to a very fine powder. It is a little more complicated than this, but it is clear that the whole business is very very dirty and energy intensive. I attach a link to the Cementa limestone mine, lots of dust is evident: https://www.dezeen.com/2021/07/15/carbon-sweden-economic-impacts-environmental-ruling-cement-plant/. The CO2 footprint is self evident from the manufacturing process. It is therefore no wonder that the mine is facing considerable environmental pushback. This is probably one of the easiest activities for the environmental movement to target successfully.
Kaunis, Beowulf Kallak and Tapuli mine applications are all for iron ore mines. I have mentioned in other posts that the quantities dug up are in the tens of millions of tons, not thousands of tons. It is for this reason that TLG has been trying dispose of their iron ore assets they consider not to be strategic. They have not been successful in the disposal for quite a while as these assets came with the original tenement package acquisition nearly 10 years ago. These three applications are for open pit mines with a much larger footprint than the Vitangi graphite deposit. The mines are in the Pajala district, TLG no longer holds any assets in the Pajala district whether graphite or otherwise. The Kaunis and Tapuli mines are not only adjacent to extensive wetlands but are several meters below their level, therefore a large deep hole in the ground will quite possibly have a significant impact on the water table and those wetlands. Kallak is on an island in the middle of a river, speaks for itself.
TLG's proposed small scale open pit mine is not over the fence from either the Natura 2000 delineated area or the the highly sensitive Torre river. The Hosio lake within the tenement boundaries does not flow into the Vitangi river, tributary to the Torre River. The TLG proposal is to process the initial material on site, 100,000 tons annually, to separate the graphite from the other materials in the deposit under cover of a large shed, the waste will be used as basic road grade material. The engineering of the graphite into anode material will be completed at Lulea in a specified industrial area, where the pilot plant is currently under construction. This is a much more difficult proposal for the environmental lobby to fight successfully, the finished material is critical to a carbon free energy and transportation future, and has a minimal footprint.
I am not saying that the required permits are not relevant, clearly they are. The question is what is the likelihood of their award. Sweden, and more specifically the environmental movement, cannot deny every single application without losing credibility. I would argue it is a question of picking the battles you are likely to win, whether it is TLG or its opponents, if any. The fact that I remain invested would suggest I favour TLG. I have had an extensive career in investment banking, where the assessment of risk is paramount, most of the downside has been addressed. We just need to wait patiently for the verdict.
As always please do your own research
TLG Price at posting:
$1.29 Sentiment: None Disclosure: Held
(20min delay)